NESTLE

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Transcript of NESTLE

NESTLE Nestle's BackgroundFounder : Henri NestleCompetitive StrategyDifferentiationFocusing on R&DDevelop unique and superior value productsExample: NespressoFounded : 1886 yearFirst product : Baby Formula, named "Farine Lactee"S.W.O.T analysisStrengthStrong R&D capabilityMergers and acquisitions and joint venturesStrong marketing and advertising powerStrong brand loyalty and brand recallEfficient distribution networksTHE ENDThank YOU !I give you all a clap for being a good listener :)Grand StrategiesGrowth Strategies1)Research & Development (R&D)Expand their coffee factory in ChinaBuild a R&D center in Singapore Innovation in frozen and chilled product at USOpen a new coffee center in Philippines2) Rural Development Framework (RDF)Invested a large amount of money to the new Nestle bottled water industry in UKYunnan's government has decided to invest to the Nestle Coffee CentreTo overcome the identified Weakness and ThreatsTo enhance the identified Strength and Opportunities Market Expand & Control

* The growth of private labelsThreats• Unmatched product and brand portfolio- Ranges from global icons to local favorites• Unmatched research and development capability- Clear priorities, focused on innovation and renovation, made relevant and attractive for consumers• Unmatched geographic presence- Deep understanding in many countries- Thus, strong relationship between brands and consumers• People, culture, values and attitude- Creating value for society as a whole

Porter's five forces modelThreat of New EntrantsModerateLeader of marketQuality products and consumer satisfactionBig challenge for the new entrantsBargaining Power of SuppliersLarge purchasing powerHolds more bargaining power than its suppliersStrong and positive relationshipProduct that is far from uniqueBargaining power of BuyersConsumers have a large amount of bargaining powerConsumptionA lot of substitutes products and competitorsQuality has been maintainedThreat of substitute ProductsAfflicted with the treat of substitute productsArrays of similar products that compete directlyFind new ways to improveGenerate new sources of growthRivalry among CompetitorsFew major rivals do existFighting continuously to outperform one anotherAchieved significant improvementsConclusion for Competitive Strategy Cost leadership (may need to sacrifice the product quality)

* Significant investments in Russia, India and many African and Latin American countries.

* The winner of the 27th World Environment Center (WEC) Gold Medal award for its commitment to environmental sustainability

* Nestlé Bottled Waters Industry was able to critically audit the old site to establish where improvements could be made with help from experts in lean production

* Using locally sourced materials improved the economy and brought employmentEnhancement- Cost of production

- Gain more loyalty consumer

- Management

Quality control

- Imaging

Legalism over employmentGain more loyalty consumer- To cope with private labeling

Management-Multinational CompanyAvoid controversiesHold more interaction event and give out more inspirational talk or training to employee to build a good personality.Quality control- Improve quality control

Imaging- Weak CSR plan

Legalism over employment- Scandal over under age employees1. Market Expand & Control -Joint venture and M&A

* Expand their market control by jointing venture with more food & beverage companies

* Pour in more fund to carry M&A plan

2. Branding - People knows about Maggi but how about Nestle?

* 1 Malaysia? What is the purpose of setting up 1 Malaysia shop?

* Help people? Promote its 1 Malaysia culture?

* Nestle should also set up a very small shop , a new concept shop to sell only Nestlé’s product as they have many type of products

* Promote their company

* When you think of our current Prime Minister think of 1 Malaysia.

* When you think of food think of Nestle

3. Old fashion & Convenience -Set up a mobile shop

* For people who don’t venture out for snack.

* World Cup (promotion? Forget to buy your snack? )

* If the feedback is good then this plan can be carry out

4. Land explore - Having own land to produce raw material. -NEWS about African’s land is being explored by Nestle

5. Power Advertising -Maggi is not only a food; it’s a part of MALAYSIA.

* Produce raw material by own self?

* Africa has a large piece of land

* Long term investmentCost of production - Instead of hedge inflation by increasing the price, why don’t? :Employ legally by following the rules and policiesReinforce the implementation of CSRReplace a new materialSet up more check up central to ensure product is secured and safe to eatWhy other company can't compete with price of Nestle? Price War?R&D on more cheap and daily product like bread.A branded and an unknown product with the same price, which will be your choice?